If you're a small business owner, you know that credit card processing fees can eat into your profits if you're not careful. But what are these fees, and how can you avoid them?
Here's a quick rundown of the most common credit card processing fees:
1. Interchange Fees: These are the fees charged by the credit card companies themselves. They usually range from 1-3% of the total transaction, and they go to the credit card issuer.
2. Assessment Fees: These are also charged by the credit card companies, and they usually range from 0.11-0.15% of the total transaction.
3. Gateway Fees: These are charged by the company that handles the credit card processing for your business. They typically range from $0.10-$0.30 per transaction.
4. Processor Fees: These are fees charged by the company that processes your credit card transactions. They typically range from $0.05-$0.20 per transaction.
5. statement Fees: These are monthly fees charged by the credit card processor for sending you a statement. They typically range from $2-$10 per month.
As you can see, there are a lot of fees involved in credit card processing! But don't worry, there are ways to avoid paying these fees.
1. Negotiate with your credit card processor.
One of the best ways to avoid paying high credit card processing fees is to negotiate with your processor. Let them know that you're aware of the fees and that you're not happy about paying them. They may be willing to waive some of the fees or give you a lower rate.
2. Use a debit card instead of a credit card.
If you're paying for something with a debit card, you're not subject to the same fees as you are with a credit card. This can save you a lot of money on processing fees!
3. Pay attention to your statement.
Most credit card processors will charge you a monthly statement fee. This is simply a fee for sending you a statement each month. You can avoid this fee by either paying your bill online or requesting electronic statements.
4. Use a flat-rate processor.
Some credit card processors charge a flat rate for processing transactions, regardless of the type of card used. This can save you money if you process a lot of transactions!
5. Ask for a lower rate.
If you're a good customer, your credit card processor may be willing to give you a lower processing rate. It never hurts to ask!
By following these tips, you can avoid paying high credit card processing fees and save money for your business. Do you have any other tips to share? Let us know in the comments!
This article was originally published on February 28, 2017. It has been updated for accuracy and comprehensiveness.
Keep this quick guide handy the next time you're considering credit card processing for your small business! By following these tips, you can avoid paying high fees and save money. And if you have any other tips to share, be sure to leave a comment below!
